Housing Legislation

2025 Updates

Over the past several years, the California State Legislature has adopted numerous bills intended to address California’s housing crisis by limiting local government discretion over housing development projects in an effort to increase housing supply. In 2024, this trend continued in Sacramento. Some of the bills affecting housing are noted below.

HOUSING ELEMENT

Assembly Bill (AB) 1886 establishes that a local agency's housing element is certified only when the Department of Housing and Community Development (HCD) or a court of competent jurisdiction confirms compliance with housing element law, eliminating the option for local governments to "self-certify" their housing elements. It also allows the builder's remedy to take effect immediately if HCD determines a city is out of compliance with state law and the local agency fails to meet the statutory deadline for obtaining a certified housing element.

Assembly Bill (AB) 1893  prohibits local agencies from denying housing development projects that qualify as builder’s remedy, mixed-income, or low-income projects if the city lacks a certified housing element. It also prevents local agencies from applying objective standards that render projects infeasible or taking actions that cause unnecessary delays or increase project costs. These actions include deeming a project application incomplete or requiring more than two resubmittals unless the agency provides a valid reason that such actions are not effectively disapprovals. Additionally, builder’s remedy projects submitted before a local agency achieves housing element certification by HCD may proceed, even if certification is later obtained.

The measure introduces a new definition for housing for mixed-income households, encompassing:

• Projects with at least 7% of units for acutely low-income households, 10% for low-income households, and 13% for lower-income households.

• Developments with 10 or fewer units on sites smaller than one acre, with a minimum density of 10 units per acre.

• Projects where 100% of units are dedicated to acutely low, very low, or low-income households, with affordable costs maintained for 55 years.

Assembly Bill (AB) 2023 establishes a higher legal standard for local agencies to contest the HCD's determination that their housing element is not certified in court. It also mandates that local agencies failing to meet their statutory deadline for housing elements must complete all required site rezonings within one year of that deadline. Agencies that submit their housing element at least 90 days before the statutory deadline and receive HCD certification will have three years and 90 days to complete rezoning. Additionally, any amendments to a housing element made in response to HCD findings, regardless of how technical or minor, must undergo 90 days of HCD review and a 30-day public comment period.

Assembly Bill (AB) 3093 introduced in California, addresses transparency and oversight in local government development projects. It mandates that cities and counties disclose key financial details and public benefits of proposed development agreements before approval. The bill emphasizes accountability by requiring public hearings and providing opportunities for community input. By enhancing transparency, AB 3093 seeks to ensure that development agreements align with public interest and foster trust between local governments and their communities.

Senate Bill (SB)1037 allows the Attorney General to fine local jurisdictions up to $50,000 a month for not having a certified housing element, for not ministerially approving an affordable housing project required by state law, or for any local agency act or omission that is “arbitrary, capricious, entirely lacking in evidentiary support, contrary to established public policy, unlawful, or procedurally unfair.” These fines can only occur after a court has ruled the city has violated the law. Finally, this measure will fine jurisdictions $50,000 a month until their housing element is certified by the HCD if the city does not get a housing element approved by the state within 120 days of a court ruling that a city does not have a compliant housing element.

ADU/JADU

Assembly Bill (AB) 2533 prohibits a local agency from denying a permit for an unpermitted ADU or Junior Accessory Dwelling Units (JADU) constructed before Jan. 1, 2020, unless the local agency finds that correcting the violation is necessary to comply with conditions that would otherwise deem the building substandard. In addition, this measure requires local agencies to inform the public about the new law through public information resources, including developing permit checklists showing how a building is deemed substandard, providing information about this measure on the local agency’s website, and informing homeowners before submitting a permit application that they may obtain a third-party code inspection from a licensed contractor. Finally, this measure prohibits the local agency from requiring a homeowner to pay impact fees or capacity charges on the unpermitted ADU unless utility infrastructure is necessary not to make the project a substandard building.

Assembly Bill (AB) 3057 exempts from CEQA any ordinance adopted by a local city or county that permits the creation of JADUs in single-family residential zones.

Senate Bill (SB) 1211 requires local agencies to ministerially approve up to eight detached units on an existing multifamily dwelling lot, so long as the number of ADUs does not exceed the number of existing dwelling units on the lot. This measure also prohibits local agencies from requiring the replacement of uncovered parking spaces that are demolished to construct an ADU.

SENATE BILL (SB) 9

Senate Bill (SB) 450 eliminates the ability of local governments to deny an SB 9 (2021) project based on objective standards specific to the project itself. Instead, it clarifies that objective standards should only apply to the underlying zoning of the main lot. Additionally, it prohibits local agencies from denying an SB 9 project due to potential impacts on the physical environment. Lastly, it mandates that local agencies approve or reject a project application within 60 days of receiving a completed application, or the project is automatically deemed approved.

LAND USE/PLANNING

Assembly Bill (AB) 1801 broadens the types of supportive housing developments eligible for ministerial approval by local agencies to include administrative office spaces used by nonprofit organizations to deliver on-site supportive services. It lowers the maximum allowable administrative office space within a development from 50% to 25% of the total floor area. Additionally, for developments with more than 20 units, it allocates 3% of the total floor area (instead of 3% of the nonresidential floor area) for on-site tenant-focused supportive services, such as community rooms, case management offices, computer rooms, and community kitchens.

Assembly Bill (AB) 2243 expands by-right zoning requirements established under AB 2011 (2022) to include regional mall sites up to 100 acres, sites within 500 feet of a freeway that meet specified air-filtration standards, and locations within existing high-rise districts that are not along commercial corridors. It also clarifies that affordability requirements apply only to base units proposed, excluding those added through the Density Bonus Law. Additionally, the measure establishes new timelines for local agencies to assess whether a proposed project complies with objective planning standards.

Assembly Bill (AB) 2667 mandates that local agencies in the seventh RHNA cycle provide a draft site inventory to HCD and the public at least 90 days before the initial adoption of the housing element and at least seven days before any subsequent adoption submittal if changes have been made to the site inventory. It also requires HCD to create a standardized reporting format for fair housing programs. Local agencies must include in their annual reports the number of units approved in the previous year for acutely low, extremely low, very low, lower, moderate, and above-moderate income households within opportunity areas. Additionally, local agencies must publish their site inventories online and notify interested individuals and organizations by email.

Assembly Bill (AB) 2694 specifies that a residential care facility for the elderly qualifies as a senior citizen housing development project under the Density Bonus Law.

Assembly Bill (AB) 2926 requires the owner of an assisted housing development with at least 5% of units under expiring affordability restrictions to either sell the property to a qualified preservation buyer at fair market value or extend the affordability restrictions for at least 30 more years. It eliminates the option for property owners to retain the property for five years and includes new streamlined affordable housing projects, such as those established under AB 2011 (2022) and SB 4 (2023), in the Preservation Notice Law's scope.

Assembly Bill (AB) 3122 reduces the affordable housing threshold that local agencies can apply recently adopted objective planning standards when an SB 423 (2023) project is modified post-entitlement and revises certain aspects of the streamlined ministerial process established by the previous law. The following changes were made in this measure: 

• Clarifies that an SB 423 project application subject to the Subdivision Map Act is exempt from the California Environmental Quality Act (CEQA) and all local objective standards if the project receives Low-Income Housing Tax Credits or is in specific infill areas. 

• Establishes a lower affordability threshold to include 20% of the total units before calculating any density bonus, with at least 9% affordable to households earning up to 50% of area median income (AMI) and the rest affordable to households earning up to 80% AMI, for SB 423 projects submitted before Jan. 1, 2019, that include at least 500 units of housing. 

• Clarifies that all references to units affordable to very low-income households that earn 0-50% of AMI include acutely low-income households (that earn 0-15% of AMI) and extremely low-income households (that earn 15-30% of AMI). 

• Establishes a 30-day timeline for local governments to review revisions made to address written feedback from the local government submitted by the developer.

2024 Updates

On February 15, 2024, a Planning Commission Study Session is scheduled on recent developments in land use law that affect how the City plans for, reviews, and act on new housing development applications.

Here is the link to the Agenda

SB 4  focuses on simplifying affordable housing development on lands owned by faith-based organizations and non-profit institutions of higher education, potentially opening up around 171,000 acres for such projects. SB 4 requires ministerial approval (approval without discretionary permits or review under the California Environmental Quality Act) of certain development applications for 100 percent affordable housing on land owned by an independent institution of higher education or a religious institution.  In effect, SB 4 streamlines the building process for faith-based institutions and certain colleges by providing a process that allows them to build qualifying housing projects regardless of zoning restrictions if certain requirements are satisfied (Link to SB 4).

Accessory Dwelling Units (ADUs) - Assembly Bill (AB) 2221 and Senate Bill (SB) 897

The Legislature adopted two key ADU bills in 2022: AB 2221 and SB 897. These bills took effect on January 1, 2023, and amend Government Code Sections 65852.2, 65852.22. and 65852.23, and Health and Safety Code Section 17980.12. 

ADU Review and Approval Process

• Permits for ADUs and Junior ADUs must be reviewed ministerially; no discretionary review or hearings are permitted

• Ordinances may not conflict with provisions of Gov. Code Sec. 65852.2(a) through (d)

• Ordinance must allow ADUs and Junior ADUs specified in Gov. Code Sec. 65852.2(e)

• Time to approve or deny permit application:

• 60 days from complete application if there is an existing dwelling unit (or units) on the lot

• May delay acting on applications to build ADUs with new single-family or multi-family dwellings, but ADU or Junior ADU permit may only be reviewed ministerially

• If complete application not acted on within 60 days, it shall be “deemed approved” if the local agency has not adopted a compliant ADU ordinance

• If application is denied, City must provide full set of comments identifying defects and how application can be remedied

General ADU Standards

• Must allow ADUs in areas zoned to allow residential uses

• May only restrict location based on: adequacy of water and sewer; impact of ADU on traffic flow; and public safety

• Owner-occupancy requirements are not permitted

• This provision sunsets in 2025, but units built between 2020 and 2025 remain exempt

• Pending legislation would remove the sunset provisions

•  Jurisdictions may prohibit rentals of less than 30 days in all ADUs and must prohibit short-term rentals in ADUs created under Gov. Code Sec. 65852.2(e)

• Jurisdictions may allow the separate sale or conveyance of an ADU from a primary residence if it was constructed by a qualified nonprofit organization under AB 587

• No fire sprinklers required in ADU if not also required in primary dwelling

• Creation of ADU may not trigger requirement for fire sprinklers to be installed

ADU Height Standards

• Height limit for detached ADUs

• 16 ft minimum

• 18ft ft on a lot with an existing or proposed multifamily multistory dwelling unit

• 18 ft, plus 2 ft for roof pitch, on lots within one-half of one mile walking distance of a major transit stop or a high-quality transit

• corridor

• Height limit for attached ADUs

• 25 ft or the height limitation in the local zoning ordinance that applies to the primary dwelling, whichever is lower

• No requirement to permit ADUs with more than 2 stories

Additions and New Detached ADUs

• Expressly allowed to regulate parking, setback, landscape, architectural review,

• maximum unit size, and to require standards that prevent adverse impacts on any real property that is listed in the California Register of Historic Resources

• Prohibited from enforcing minimum lot size requirements

•  Lot coverage requirements still allowed Setbacks

• No setback for conversions of existing structures

• No more than 4’ side and rear-yard setbacks for all other ADUs

•  No front yard setback if ADU development otherwise infeasible

•  Minimum and maximum size requirements permitted:

•  Minimum size must allow efficiency units (150 square feet)

•  Maximum must be at least 850 square feet or 1,000 square feet for ADUs with 2+ bedrooms

•  Standards must be waived to permit at least 800 square foot ADU with 4’ side and rear-yard

ADU Parking

• Maximum of 1 space per bedroom or per ADU, whichever is less (i.e., no parking required for an efficiency or studio ADU)

• Must allow tandem parking and parking in setbacks, unless specific site conditions, regional topography, or fire and life safety issues make this infeasible

• If existing parking area is converted to an ADU, no replacement parking may be required

• No parking may be required for ADUs:

  • Within ½-mile walking distance of public transit (including bus stops)

  • Within an architecturally and historically significant district

  • That are part of the existing primary residence or a converted accessory structure

  • In areas where on-street parking permits are required but not offered to ADU occupants

Mandatory ADU Approval on Single Family Lots

Regardless of any other provisions, must approve building permits in any residential or mixed-use zone to create any of the following:

• One ADU and one Junior ADU with existing or proposed single family unit

  • Expansion up to 150 square feet of existing space permitted

  •  Exterior access required

  •  Setbacks sufficient for fire safety

• One detached ADU on lots with an existing or proposed single family unit

  •  Not more than 800 square feet

  •  4’ side and rear yard setbacks

  • May be combined with a Junior ADU

  • Within one block of car share vehicles

Mandatory ADU Approval on Multifamily Lots
Regardless of any other provisions, must approve building permits in any residential or mixed-use zone to create any of the following:

• Multiple ADUs within existing multifamily building

  •  Conversion of space not used as livable space

  •  Examples: storage rooms, boiler roomers, garages, etc. – but must meet building code standards

  • Must allow 25% of existing units in building or one unit, whichever is greater

• Not more than two ADUs on lots with existing multifamily units

  •  Detached from existing multifamily building

  •  4’ side and rear yard setbacks

ADU Impact Fees

• ADU less than 750 square feet: none permitted

• ADU 750 square feet or more: charged proportionately in relation to the primary dwelling unit square foots

Connection Fees and Capacity Charges

• ADU or Junior ADU developed under Gov. Code Sec. 65852.2(e)(1)(A): no connection fee or capacity charge, and no direct connection between ADU and utility unless in conjunction with a new single-family home

• All other ADUs: connection fee or capacity charge “proportionate to the burden” of the ADU and may require new or separate utility connections

 Cost Recovery Fees

•  Local agency may charge fees to reimburse for costs incurred to implement Gov. Code Sec. 65852.2(a)(3) (60 day ministerial review process), including costs to adopt or amend ADU ordinance

State Density Bonus Law - AB 682, AB 2334, and AB 1551

The State Density Bonus Law allows developers to qualify for bonus units, reduced parking standards, and other development standard modifications (known as incentives/concessions and waivers) in exchange for affordable housing, senior housing, or other special housing types. In 2002, three bills (AB 682, AB 2334, and AB 1551) modified the State Density Bonus Law to allow shared housing buildings to qualify for a density bonus and to allow the City to award a commercial density bonus to qualifying projects. The bills also allow for additional bonuses to be awarded in defined “low vehicle-miles-traveled (VMT) areas” that are urbanized and have a low rate of vehicle miles traveled. Finally, the bills refined how density calculations are performed, particularly in zones that do not use a dwelling unit per acre density standard and instead rely on FAR limitations or other form-based development standards.

Post-entitlement phase permit - AB 2234

In prior years, the Legislature introduced bills – such as SB 35 and AB 2162 – to streamline the planning entitlement process, and the Permit Streamlining Act establishes deadlines for the City to review and act on development applications. However, developers also require a number of approvals from the City after entitlements have been approved to implement their approved projects. Accordingly, AB 2234 defines a new class of “post-entitlement phase permits” including building permits, demolition permits, and minor permits for off-site work. Under AB 2234, the City must review and act on post-entitlement phase permits for housing development projects within 30 days (or 60 days for projects with more than 25 units). Failure to comply with these deadlines is deemed to be a violation of the Housing Accountability Act. In addition, by January 1, 2024, the City must allow for post-entitlement phase permits to be submitted on-line and meet other procedural requirements.

Residential projects in commercial zoned parcels - AB 2011 and SB 6

AB 2011 and SB 6 were both enacted in order to allow residential development on a streamlined basis in areas zoned for commercial development. AB 2011 creates two new streamlined processes: one for 100% affordable projects and one for mixed-income projects that each define specific development standards for qualifying projects. Both processes require ministerial review, which means that California Environmental Quality Act or CEQA will not apply. SB 6 does not create a new development review process, but it enables residential projects to qualify for SB 35 on commercially-zoned parcels. Projects that use either AB 2011 or SB 6 will also be subject to defined labor standards.

Updates to recent developments in land use laws that are applicable to the City was presented to City Planning Commission and the public on June 15, 2023 and can be viewed here. These laws include changes to the accessory dwelling unit processes, Senate Bill 9, Assembly Bill 2234 Post-Entitlement Streamlining timeline, Assembly Bill 2097 Parking Limitations, Assembly Bill 2011 and Senate Bill 6 Residential Development in Commercial Zones, and Updates to Density Bonus laws such as Assembly Bill 682, 2334, and 1551.

Parking requirements near public transit - AB 2097

In an effort to reduce development costs and reduce reliance on private automobiles, AB 2097 eliminates most minimum parking requirements near public transit stations. Specifically, if a development project is proposed within ½ mile of rail or bus rapid transit stations, ferry terminals served by bus or rail transit, intersecting bus routes with 15-minute peak headway times, and planned major transit stops included in the regional transportation plan, then it is exempt from minimum parking requirements.

On June 15, 2023, these bills were presented to the Planning Commission in a study session. For details, please refer to the Planning Commission meeting (VIDEO LINK and PDF)